Invo Bioscience (NASDAQ:INVO) stock appears to be rocketing higher on Friday but it’s actually undergoing a reverse stock split.
Invo Bioscience has enacted a one-for-20 reverse stock split that went into effect this morning. That reverse stock split basically has it consolidating down 20 shares of INVO stock into a single share.
Stockholders of Invo Bioscience will note that the company’s shares will continue to trade under the INVO ticker after the split. However, the CUSIP number for the company’s shares is changing to “44984F401”.
Invo Bioscience notes that after the reverse stock split, it has 842,017 shares of INVO stock issued and outstanding. The company is also making a proportionate adjustment to its authorized shares so that it will have 6,250,000 shares authorized.
What’s Behind The Reverse INVO Reverse Stock Split
Invo Bioscience underwent a reverse stock split to boost the price of its shares. Prior to this split, the company’s stock closed out Thursday at about 19 cents per share. That’s below the $1 minimum needed to remain on the Nasdaq Exchange. The reverse stock split puts its price above the $1 minimum and helps it avoid delisting.
Trading activity this morning has some 72,000 shares of INVO stock on the move. That’s still well below its daily average trading volume of about 1.5 million shares.
While INVO stock appears to be up more than 2,000% on Friday morning, its shares are actually only up 17.5% on a post-split basis.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
